dell Inc. is a publicly traded tech. goods company. The company has $ 520 million in book value of debt, reported interest expenses of $ 15.2 million in the most recent year and has an average maturity of 4 years for the debt. The pre-tax cost of debt for the firm is currently 5%. What is your best estimate of the market value of debt outstanding at the firm? (You can assume annual interest payments and a marginal tax rate of 40%)

Select one:

a. $481.70 million

b. $443.01 million

c. $261.12 million

d. $483.00 million

e. $495.00 million